The risk of foreclosure can bring a lot of anxiety, and you
could be contemplating bankruptcy as an option to help you get out from under
your debt. As a homeowner, if you fall three or more months behind on your mortgage payments, your mortgage company may begin the foreclosure process.
Once this happens, your mortgage company may stop accepting payments until you
pay the full past due amount, usually called the loan reinstatement amount. As
this amount can also include any interest, penalties, and legal fees, the
amount you owe can climb quickly and it may be too much to pay. If this is your
experience, bankruptcy may be the solution you are looking for.
What is the Automatic
Stay in Chapter 13 Bankruptcy?
Filing a Chapter 13 bankruptcy will grant you protection
from your creditors. This is called the Automatic Stay of bankruptcy. This
protection is powerful enough to stop creditor action, including a foreclosure.
Once your attorney files your Chapter 13 case, you will set up a payment plan which
allows you to pay back your past due mortgage payments over a three-to-five-year
period. You will not have to pay the full loan reinstatement amount at one time.
If your home is at risk of foreclosure, call the bankruptcy
lawyers at King & King for a free consultation. We can help you file for
bankruptcy relief, and ensure that the creditor calls and collection letters
stop immediately so you can get the peace of mind you need and deserve. Call us
today at 404-524-6400 or visit us at www.kingandkingattorneys.com
